Have an account?
No student devices needed. Know more
Partnership firms in India are governed under the Partnership Act.............
As per Rule 10 of the Companies Act, what is the number of maximum partners in a firm?
Minors can be admitted to share only ...........of the firm
Tick the situations in which a partnership firm comes to an end
in the absence of partnership deed, the interest is allowed on partners capital:
no interest is allowed
A and B are partners in partnership firm without any agreement. A has given a loan of ₹ 50000 to the firm. At the end of the year, loss was incurrred in the business. following interest may be paid to A by the firm.
As there is loss in the business interest cannot be paid.
A and B are partners in a firm , they are entitled to interest on their capitals but the net profit was not sufficient for this interest, then the net profit will be distributed among partners in :
Profit sharing ratio
A and B are partners. B withdraws a fixed amount at the END of every MONTH. IOD is charged at 15%p.a. At the end of the year, interest on B's Drawings amounts to rs 1650. Drawings of B were:
which of the following items can not be recorded in the P & L appropriation a/c
Rent paid to partners
A & B are partners, their firm charges interest on drawing @10%. Be draws 1000 at the beginning of every month. what will be Average period for which IOD will be calculated
which of the following are shown on the debit side of current account ( u can tick more than one option)
Interest on capital
Interest on drawing
what is the journal entry for creating Reserve ?
Profit & Loss a/c - dr
to P & L app a/c
P & L app a/c - dr
to P & L a/c
Reserve a/c - dr
to P & L appropriation a/c
P & L app a/c
to Reserve a/c
A& B are partners in a firm. A's Caoital is ₹70,000 & B's Capital is ₹50,000. Firm's profit is ₹60,000. A's share in profit will be:
According to Profit & Loss Account, the net profit for the year is ₹ 1,50,000. The total interest on partner's capital is ₹18,000 and interest on partner's drawings is ₹2,000. The net profit as per Profit & Loss Appropriation Account will be:
A, B & C are partners in the ratio of 5:3:2. Before B's salary of ₹17,000, firm's profit is ₹ 97,000. How much in total B will receive from the firm?
Vikas is a partner in a firm. His drawings during the year ended 31st March 2019 were ₹30,000. If interest on drawings is charged @9% p.a the interest charged will be
None of these
X, Y & Z are partners in the ratio of 4:3:2. Salary to X ₹15,000 and to Z ₹ 3,000 omitted and profits distributed. For rectification, now X will be credited:
X, Y & Z are partners in the ratio of 5:4:3. X has given to Z a guarantee of minimum ₹ 10,000 profit. For the year ending 31st March, 2019, Firm's profit is ₹ 28,800. X's share in profit will be :
P, Q & R are partners in 3:2:1. R is guaranteed that his share of profit will not be less than ₹70,000. Any deficiency will be borne by P & Q in the ratio of 2:1. Firm's profit was ₹ 2,40,000. Share of P will be:
X and Y are partners in the ratio of 3:2. Their capitals are ₹ 2,00,000 and ₹ 1,00,000 respectively. Interest on capitals is allowed @ 8% p.a. Firm incurred a loss of ₹ 60,000 for the year ended 31st March, 2019. Interest on Capital will be:
X ₹ 16,000; Y ₹ 8,000
X ₹ 8,000; Y ₹ 4,000
X ₹ 14,400; Y ₹ 9,600
No interest will be allowed
If any loan is given by the partner then, balance of such loan Account should be transferred to
B/S Asset Side
B/S Liability Side
Partner's Capital A/c
Partner's Current A/c
By virtue of Section 464 of the Companies Act, 2013 the Central Government is empowered to prescribe maximum number of partners in a firm but the number of partners cannot be more than ___________.
Ram and Mohan are childhood friends. Ram is a consultant whereas Mohan is an architect. They contributed equal amounts and purchased a building for Rs. 2 crores. After a year, they sold it for Rs. 3 crores and shared the equally. Are they doing the business in partnership?
A and B are partner’s sharing profit equally. A draw regularly Rs. 4,000 at the end of every month for 6 months. Year ended on 30thSeptember 2018, calculate interest on drawings @ rate 5% p.a.
a. Rs. 350
b. Rs. 450
c. Rs. 150
d. Rs. 250
A and B were partners in a firm sharing profits and losses equally.with effect from 1st April 2019 they decided to share profits in the ratio 4 :3. Due to change in profit sharing ratio B's gain or sacrifice will be:
X ,Y and z are partners in a firm sharing profits and losses in the ratio of 5:3:2. The partners decided to share future profits and losses in the ratio of 3:2:1. Each partners gain or sacrifice due to change in the ratio will be:
X sacrifice 1/30; Y gain 1/30; Z nil
X gain 1/30;Y nil; Z sacrifice 1/30
X nil; Y sacrifice 1/30; Z gain 1/30
X nil; Y gain 1/30; Z sacrifice 1/30
A and B were partners in the firm sharing profits or losses in the ratio of 3: 5. with effect from 1st April 2019 they decided to share profits or losses equally. Due to change in profit sharing ratio, A's gain or sacrifice will be:
When Goodwill is not purchased Goodwill account can :
Never be raised in the books
Be raised in the books
Be partially raised in the books
The raised as per the agreement of the partners
A, B and C are partners sharing profits in the ratio of4:3:2 decided to share profits equally. Goodwill of the firm is valued at rupees 10800. In adjusting entry for goodwill:
A's capital account Cr. 4,800;B's capital account Cr. 3,600; C's capital account Cr 2,400
A's capital account Cr 3,600; B's capital account Cr 3,600; C's capital account Cr 3,600
A's capital account Dr. 1200; C's capital account Cr 1200
A's capital account Cr 1200; C's capital account Dr. 1200
Out of the following which is not a part of the change in profit sharing ratio
Determination of sacrificing and gaining ratio
Accounting of goodwill
Accounting of reserves, accumulated profits and losses
Dissolution of partnership firm
Revaluation account is a _____________account.
Any change in the relationship of existing partners which result in an end of the existing agreement and enforces making of a new agreement is called:
Revaluation of partnership
Reconstitution of partnership
Realisation of partnership
None of the above
Assets which physically exist but not shown in the balance sheet are__________.
Investment Fluctuation Reserve Rs. 1,80,000, Investment Rs. (Book Value) 4,00,000 & Market value Rs.4,20,000 with what Amount A will be credited. If their are three Partners Sharing Profit & Losses 2:2:1. Now From 1st April 2020 wants to change to 3:2:1.